Fundamental Comment

Oil hovers near four-year low amid calls for emergency OPEC meeting

Oil hovers near four-year low amid calls for emergency OPEC meeting

Oil prices traded near the lowest level in four years on Wednesday due the rapid spread of the deadly coronavirus, amid Iraqi calls for an emergency OPEC and non-OPEC meeting to halt prices crash.

Crude oil futures traded at $26.46 a barrel, the lowest since February 2016, extending its tumble for a third straight session.

Brent crude settled at $28.50 a barrel, the lowest level since January 2016.

Still, fears of the coronavirus impact on global crude demand is predominant among investors, with the sharp increases in new cases and deaths toll worldwide.

Iraq has called for an emergency meeting between OPEC and non-OPEC producers to discuss immediate action to help balance the supply and demand in the oil market.

Oil prices dropped sharply after the failure of production cut agreement between large producers, which caused Saudi Arabia to lead a price war against Russia.

The US dollar index halted its latest rally as it fell to 99.53 after hitting a high of 100.06 the previous session.

Later in the day, eyes will focus on the U.S. EIA report that may signal a rise in crude inventories by 3.2 million barrels last week.

Share Article